Sensex slips 46 points ahead of RBI’s monetary policy meet

Market benchmark Sensex dropped by 46 points on Monday, after taking a day’s breather, to close at 24,824.83 as banking stocks came under selling pressure ahead of the Reserve Bank monetary policy meet.

Market benchmark Sensex dropped by 46 points on Monday to close at 24,824.83.(File Photo)

Market benchmark Sensex dropped by 46 points on Monday, after taking a day’s breather, to close at 24,824.83 as banking stocks came under selling pressure ahead of the Reserve Bank monetary policy meet.

Domestic investors ignored a strong set of manufacturing numbers and preferred to stay light on positions before the RBI meet on Tuesday, where it is likely to keep monetary policy steady amid Chinese manufacturing activity falling to its lowest level in three years -- to 49.4 in January.

ICICI Bank with a loss of 5.63% was the worst hit from the Sensex pack followed by SBI, at 3.92% down.

After a higher start, Sensex regained 25,000 to touch the day’s high of 25,002.32 but on emergence of profit-booking, it fell to hit the day’s low of 24,788.58.

Finally, the index ended 45.86 points or 0.18% down at 24,824.83. The gauge had gained 401.12 points in the previous session on positive global cues after Bank of Japan adopted a negative interest rate policy.

The broader NSE Nifty eased by 7.60 points or 0.10% to close at 7,555.95.

Meanwhile, manufacturing sector returned to growth in January, expanding at a four-month high pace on rise in new business orders, a monthly survey showed on Monday, adding to the expectations of RBI keeping rates unchanged.